RATIO ANALYSIS OF H&M

Prepared by: Fatma Mohammed

 LIQUIDITY RATIOS

Current Ratio: Current Ratio

1.65
• 2016: 50,663/31,705 = 1.60:1 1.6

RATIO SCORE
1.55
1.5
• 2017: 55,746/40,723 = 1.37:1 1.45
1.4
1.35
1.3
1.25
Quick Ratio 2017 2016
YEARS
0.62
0.6
RATIO SCORE

0.58
0.56
0.54 Quick Ratio:
0.52 2016: 50,663 – 31,732/31,705 = 0.60:1
0.5
2017 2016 2017: 55,746 - 33,712/40,723 = 0.54:1
YEARS
 PROFITABILITY RATIOS

Net Profit Margin • Net Profit Margin

10
2016: 18,636/192,667 x 100 = 9.69%
9.5
9 2017: 16,184/200,004 x 100 = 8.09%
RATIO SCORE

8.5
8
7.5
7
2017 2016
YEARS
Gross Profit Margin
55.2

RATIO PERCENTAGE
55
54.8
Gross Profit Margin 54.6
54.4
54.2
2016 : 106,177/ 192,267 x 100 = 55% 54
53.8
53.6
2017 :108,090/200,004 x 100 = 54% 53.4
2017 2016
YEARS
 Operating Profit Margin
12.5

RATIO PERCENTAGE
12
• Operating Profit Margin 11.5
11
• 2016: 23,823/ 192,267 x 100 = 12% 10.5
• 2017: 20,569/200,004 x 100 = 10% 10
9.5
9
2017 2016
YEARS

RETURN ON CAPITAL
EMPLOYED
50
Return on Capital Employed
RATIO PERCENTAGE

40
30
2016: 23,823/60,772 x 100 =39.2%
20
10 2017: 20,569/66,352 x 100 = 31%
0
2017 2016
YEARS
 ACTIVITY RATIO

Inventory Turnover Inventory Turnover in Days

132
2016: 86,090/28,282.5 = 3.04 130
128
126

DAYS
In Days : 365/3.04 = 120 days 124
122
120
118
2017: 91,914/32,722 = 2.81 116
114
2017 2016
Days: 365/2.81 = 130 days YEARS
Debtors Turnover
Debtors Turnover in Days
10.2
10 2016: 192,267/ 4,451= 43.2
9.8
9.6
In Days - 365/43.2 = 9 days
DAYS

9.4
9.2
9
8.8 2017: 200,004/5,089 = 39.3
8.6
8.4
2017 2016 In Days - 365/39.3 = 10 days
YEARS
 Working Capital Turnover Ratio
14 Working Capital Turnover Ratio
12
RATIO SCORE

10 2016: 192,267/20,778.5 = 9.25

8
6
2017: 200,004/16,990.5 = 11.77
4
2
0
2017 2016
YEARS

Fixed Assets Turnover Ratio

4.02

RATIO SCORE
Fixed Assets Turnover 3.98

3.96
2016: 192,267/47,916 = 4.01 3.94

3.92
2017: 200,004/50,816 = 3.94
3.9
2017 2016
YEARS
 CAPITAL STRUCTURE RATIO

• Proprietary Ratio Proprietary Ratio

68
• 2016: 61,236/93,232 x 100 = 65.68%

RATIO PERCENTAGE
66

• 2017: 59,713/99,519 x 100 = 60.00% 64

62
60
58
56
2017 2016
Debt-Equity Ratio YEARS

0.102
0.1
0.098 Debt-Equity Ratio
0.096
RATIO SCORE

0.094
0.092 2016: 5,638/61,236 = 0.09
0.09
0.088
0.086 2017: 6,126/59,713 = 0.10
0.084
2017 2016
YEARS
 Return On Equity
30.5
30
29.5
• Return on Equity 29

RATIO SCORE
28.5
• 2016: 18,636/61,236= 30% 28
27.5
• 2017: 16,184/59,713 =27%
27
26.5
26
25.5
2017 2016
YEARS
THANK YOU!